The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
BRUNSWICK CORPORATION (BC) is a mid-cap value stock in the Recreational Products industry. The rating according to our strategy based on Joel Greenblatt changed from 50% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Brunswick Corporation is engaged in designing, manufacturing, and marketing recreational marine products, including marine propulsion products, parts and accessories, and boat brands, and operate service and shared access businesses, including the boat club. The Company operates through segments such as Propulsion, Parts & Accessories and Boat. The Company's propulsion products include marine engines and related controls, rigging, and propellers. It manufactures and distributes a portfolio of parts and accessories, engine parts and consumables, electrical products, and boat parts and systems for original equipment manufacturers, aftermarket parts and accessory retailers and distributors, and for internal production. Its boats include fiberglass sport boats, cruisers, sport fishing and center-console, offshore fishing, aluminum and fiberglass fishing, pontoon, utility, deck, inflatable, tow/wake, and heavy-gauge aluminum boats.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis of BRUNSWICK CORPORATION
Full Guru Analysis for BC
Full Factor Report for BC
FRONTDOOR INC (FTDR) is a mid-cap growth stock in the Business Services industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Frontdoor, Inc. is a provider of home service plans in the United States. The Company operates under the brands American Home Shield, HSA, Landmark and OneGuard, as well as ProConnect, an on-demand membership service for home repairs and maintenance, and Streem, a technology company that enables businesses to serve customers through an enhanced augmented reality, computer vision and machine learning platform. Home systems and appliances, which include electrical, plumbing, central heating, ventilation and air conditioning (HVAC) systems, water heaters, refrigerators, dishwashers and ranges/ovens/cooktops, as well as optional coverages for electronics, pools, spas and pumps. Its ProConnect on-demand home services business and Streem, a technology platform that uses augmented reality, computer vision and machine learning to, among other things, help home service professionals more quickly and accurately diagnose breakdowns and complete repairs.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | PASS |
Detailed Analysis of FRONTDOOR INC
Full Guru Analysis for FTDR
Full Factor Report for FTDR
PERDOCEO EDUCATION CORP (PRDO) is a small-cap value stock in the Schools industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Perdoceo Education Corporation, through its academic institutions, is focused on providing education to its students while making ongoing investments in student serving processes, academic programs and other initiatives. The Company offers postsecondary education primarily online to a diverse student population, along with campus-based and blended learning programs. Its institutions, Colorado Technical University (CTU) and the American InterContinental University System (AIU), provides degree programs through the master's or doctoral level as well as associate and bachelor's levels. Its segments include CTU and AIU. Its CTU university offers academic programs in business and management, nursing, healthcare management, computer science, engineering, information systems and technology, project management, cybersecurity and criminal justice. Its AIU offers academic programs in business studies, information technologies, education, health sciences and criminal justice.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | PASS |
Detailed Analysis of PERDOCEO EDUCATION CORP
Full Guru Analysis for PRDO
Full Factor Report for PRDO
SHOE CARNIVAL, INC. (SCVL) is a small-cap value stock in the Retail (Apparel) industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Shoe Carnival, Inc. is a family footwear retailer. The Company offer customers a broad assortment of dress, casual and athletic footwear and accessories for men, women and children. The Company provides customers to shop at any of its physical stores or shopping online through its e-commerce platform. The Company offers buy online, pick up in store services for its customers. Its store carries shoes in four categories women's, men's, children's and athletics, as well as a range of accessories such as socks, belts, shoe care items, handbags, hats, sport bags, backpacks and wallets. The Company operates approximately 377 stores in 35 states and Puerto Rico and offers online shopping at www.shoecarnival.com. Its subsidiaries include SCHC, Inc., SCLC, Inc., and Shoe Carnival Ventures, LLC.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview
of the strong and weak points of the security in the context of the strategy's criteria.| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | PASS |
Detailed Analysis of SHOE CARNIVAL, INC.
Full Guru Analysis for SCVL
Full Factor Report for SCVL
GROUP 1 AUTOMOTIVE, INC. (GPI) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Group 1 Automotive, Inc. is an operator in the automotive retail industry. The Company, through its dealerships, sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services, and sells vehicle parts. The Company operates through three segments: the U.S., which includes the activities of its corporate office, the United Kingdom and Brazil. The Company owns and operates approximately 247 franchises, representing 32 brands of automobiles, at 190 dealership locations and 49 collision centers. The Company's operations are primarily located in metropolitan areas, including in Alabama, California, Florida, Georgia, Kansas, Louisiana, Maryland, Massachusetts, Mississippi, New Hampshire, New Jersey, Oklahoma, South Carolina, Texas in the United States, United Kingdom, and in metropolitan markets in the states of Sao Paulo, Parana, Mato Grosso do Sul and Santa Catarina in Brazil.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | PASS |
Detailed Analysis of GROUP 1 AUTOMOTIVE, INC.
Full Guru Analysis for GPI
Full Factor Report for GPI
FIVE BELOW INC (FIVE) is a mid-cap growth stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Five Below, Inc. is a specialty value retailer, which offers merchandise targeted at the tween and teen demographic. The Company's assortment of products includes select brands and licensed merchandise. It operates approximately 1,173 stores and 1,018 stores, respectively, under the name Five Below. It sells merchandise on the Internet, through the Company's e-commerce Website, fivebelow.com. The Company is engaged in offering a group of products, namely leisure, fashion and home, and party and snack. Leisure includes items, such as sporting goods, games, toys, tech, books, electronic accessories, and arts and crafts. Fashion and home include items, such as personal accessories, t-shirts, beauty offerings, home goods and storage options. Party and snack include items, such as party and seasonal goods, greeting cards, candy and other snacks, and beverages. The Company operates office in approximately 40 states.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis of FIVE BELOW INC
Full Guru Analysis for FIVE
Full Factor Report for FIVE
LANDSTAR SYSTEM, INC. (LSTR) is a mid-cap growth stock in the Trucking industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Landstar System, Inc. is an asset-light provider of integrated transportation management solutions. The Company operates through two operating segments: the transportation logistics segment and the insurance segment. The transportation logistics segment provides a range of integrated transportation management solutions. Transportation services offered by the Company include truckload and less-than-truckload transportation, rail intermodal, air cargo, ocean cargo, expedited ground and air delivery of time-critical freight, heavy-haul/specialized, the United States-Canada and the United States-Mexico cross-border, intra-Mexico, intra-Canada, project cargo and customs brokerage. The insurance segment consists of Signature Insurance Company (Signature), a wholly owned offshore insurance subsidiary, and Risk Management Claim Services, Inc. The insurance segment offers risk and claims management services to certain of Landstar's operating subsidiaries.
The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.
| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis of LANDSTAR SYSTEM, INC.
Full Guru Analysis for LSTR
Full Factor Report for LSTR
More details on Validea's Joel Greenblatt strategy
Joel Greenblatt Stock Ideas
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
